Roles of income, price and household size on residential electricity consumption: Comparison of Hawaii with similar climate zone states

Abstract

In general, it is expected that residential electricity consumption decreases due to price increase. However, electricity consumption can also increase while electricity price increases, provided that income increases at the same rate or higher. Thus, we investigated the factors affecting residential electricity consumption in Hawaii; particular emphasis was placed on the Island of Oahu, most populated and an urban island. We determined that the average residential electricity consumption decreased by over 25% between the peak usage of 2004 and 2012. Despite a decrease in residential electricity consumption, the ratio of the average electricity bill to per capita income increased from 3% to 5%. A comparison of the islands’ residential energy usage suggests that each island has its own electricity consumption behavior, suggesting the importance of dwelling type, life style and household size. Further comparison of the residential electricity consumption of Hawaii with Arizona, California, Florida and Texas suggests that there is a general decrease in residential electricity consumption. However, unlike Hawaii, reduction in residential electricity usage translates into cost savings in other states. The results suggest that the decrease in residential electricity consumption in Hawaii is simply because people cannot afford it. Linear regression analysis indicates that household size is an important variable in determining the residential electricity consumption in Oahu, however is not a determining factor in other islands. It was also observed that unlike Oahu, income and price alone are not good indicators of residential electricity consumption for the islands of Hawaii, Maui and Kauai.

Keywords

• Residential electricity consumption
• Income
• Price
• Household size
• Hawaii